DEN GA said DEN Tax proposed a law to amend Gambling act and Gambling tax act, aiming to implement the agreement on lotteries that was concluded on Mar. 20, 2024.
Consultation on new rules for non-profit lotteries, liberalization of land-based bingo.
Effectiveness
Deadline for submitting consultation responses is no later than Aug. 22, 2024.
Rules are not yet in force, but are expected to take effect from Jan. 1, 2025.
Sep. 2024 Bill's Adoption Pending
On Sep. 18, 2024, DEN GA updated on status of expected new rules for non-profit lotteries and liberalized land-based bingo, because the bill's adoption is still pending.
The bill is expected to be submitted for adoption when DEN PRL reopens in Oct. 2024.
DEN Tax will also submit a draft of a new executive order on non-profit lotteries and a draft of an executive order on liberalized land-based bingo and banko for consultation.
They will appear on DEN GA's website when it will be possible to submit comments.
DEN GA is making preparations for when the expected new rules will enter into force.
E.g. preparation of a new application process for non-profit lotteries and for liberalized land-based bingo, banko; a webinar will be held on Nov. 26, 2024, if the bill is passed.
Bill proposed that applicants could apply for a permit according to the expected new rules from Nov. 21, 2024, with a possible start date for the permit from Jan. 1, 2025.
If an applicant has to apply for a permit before Nov. 21, 2024, but only wants to hold a lottery in 2025, the applicant will receive a permit according to the current rules.
But, in this case, the applicant will have the option to let that permit lapse and then apply for a permit under the expected new rules after Nov. 21, 2024.
Oct. 2024 Bill Presented
On Oct. 2, 2024, DEN Tax issued an update stating that the bill has been presented.
Welcomed planned changes, saying bingo is an important social activity that binds the population together, playing lottery and bingo also raises money for good causes.
The proposed changes to the Gambling act and Gambling tax act aim to ensure that the rules better support bingo and lotteries, ensure more money goes to these causes.
Agreement of Mar. 20, 2024 established communication network with representatives from associations and industry organizations, along with DEN GA will ensure guidance is easily accessible and targeted to various bodies that hold lotteries in Denmark.
The network has now been established and the work is underway.
Nov. 20, 2024 Legislation Published
On Nov. 20, 2024, DEN GVT published new Act amending the Gambling Act and the Gambling Taxes Act, on behalf on DEN Tax, following a previous consultation process.
The new Act 1177 provides for liberalization of registration requirements, and higher total annual sales sum of less than DKK 15,000, being the trigger for non-registration.
Permission may be granted to hold a land-based lottery for the benefit of a non-profit purpose or a political party eligible to stand for the Folketing or a national parliament in another EU or EEA country and that holds a lottery for the benefit of for themselves.
The entire profit from a lottery must be distributed for the purpose(s) as were granted.
Permission for lotteries with an annual sales amount from and including DKK 15,000, up to and including DKK 5,000,000, can be given to associations, foundations, self-owned institutions and companies, but not sole traders or personally owned SMEs.
For associations, the profit must amount to a minimum of 15% of the sales total, and for others, the profit must amount to a minimum of 35% of the overall sales totals.
Permission may be granted for the provision of land-based bingo games with such permission being able to be granted for up to 5 years at a time, for all such games.
For permits for the installation and operation of winning slot machines, cf. Section 19, subsection 1, an annual fee is paid depending on the license holder's annual taxable gambling income, cf. Section 12 of the Gambling Tax Act, to the gambling authority.
Act comes in force Nov. 21, 2024, but Sections 1 and 2 have effect from Jan. 1, 2025.
Nov. 21, 2024 New Licensing Procedures
On Nov. 21, 2024, DEN GA published the new registration and licensing procedures, and rules, for Non-profit lotteries, Land-based bingo and Slot machines, in the wake of the introduction of the Act amending the Gambling Act and the Gambling Taxes Act.
Permits issued under the new rules will only be valid from Jan. 1, 2025, as set out in the legislation, but can be applied for now by those organizations affected by changes.
Relating to changes in the way license holders with winning Slot machines must state an annual fee for Slot machines, the responsibility previously rested with the DEN Tax.
The individual licensing requirements and rules, as well as fee basis for Slot machines are all set out on their respective webpages, with some additional links as necessary.
In respect of Non-profit lotteries, provisional permits can be provided now for digital applications, with DEN GA only processing full applications received in first half 2025.
